How to make your loyalty program more meaningful to members?
Travelers' expectations have drastically changed over the last decade. Millennials, who now make up around 25% of the global population, have a very different definition of a perfect trip compared to previous generations. And they are driving much of the revenue realized in the travel industry. So, paying attention to their travel needs has become even more crucial.
Millennials tend to travel more for an experience than a luxury. They seek authentic travel experiences and shareable adventures. An Expedia survey shows that US Millennials travel 35 days per year, compared to 26 days for Generation X, 27 days for Baby Boomers, and 29 days for Generation Z. But what kind of trip do they prefer? And what does it mean for the travel sector?
Experiential travel, which was already on a rising trend, has even found more popularity due to Covid-19 restrictions because it's exactly what millennials want: exploring rather than relaxing, immersing in the local culture, food, and nature rather than in the luxury of a hotel. The travel industry shouldn't squander this unique opportunity created by the shift in travel attitude. Our customers' services should make their journey more meaningful in terms of what they explore and experience. When considering your loyalty perks, consider partnering with local tour guides, artisan craftspeople, or historians to offer 'authentic' experiences to your customers.
Companies across the travel spectrum can make customers feel exclusive by delivering on their promises, especially when and where it means a great deal to them. For instance, allocating discounted flight seats or hotel rooms to loyal customers in the high season (Christmas Eve, Easter, etc.) would suggest that you value Loyalty no matter what.
This is also an opportunity for you to encourage your customers to increase their Loyalty and receive premium offers. A tiered loyalty program would be very helpful.